Provided by Raffles @ SH

"The following are likely to be included in reasons why production has not started at Bachelor Lake:-

1. An additional $15m has been reported as being required for further capital works and although low level production could possibly be commenced, this would probably be loss making until near capacity was achieved. More importantly, Metanor qualifies for a 40% grant on mine development expenditure - but only before production starts. Production delay could therefore save an up front capital outlay of $6m.
2. The mill is already operating using the low grade Barry ore and it is therefore tried and tested for the time when the final capital expenditure is allocated to Bachelor Mine. However, by focusing all capital towards the Barry 43-101 prospects at this time, the directors may pereive that this will uplift the share price sufficiently, to enable a lower financing cost for completion of the Bachelor Lake mine. Also production startup will reqire increased working capital.
3. In summary, it appears that the most optimum use of capital now for Metanor is at Barry. From all the information that I have reviewed, the 43-101 prize at Barry seems to be sufficiently attractive for the company to prioritise that project, even if this results in delays at the high grade Bachelore Lake mine.

Since capital is the scarce resource - not ore resources for Metanor, then management would be obliged to delay the opening of Bachelor Lake, if the overall company prospects could be enhanced by getting the Barry 43-101, with the benefit of all available up to date information available.

The above also give me grounds for believing that Bachelor Lake would have have been prioritised if there were less than, say, 500,000 ounces anticipated from the Barry 43-101 deposit. However, I could be mistaken?

Raffles"